N.J. gets $51.5M in grants to redevelop foreclosures

New Jersey Foreclosure News

WASHINGTON — The state of New Jersey is getting $51.5 million in grants through a new federal program to acquire and redevelop foreclosed properties.

Five North Jersey communities will share $12.5 million under the same grant program set up by the U.S. Department of Housing and Urban Development, or HUD.

HUD Secretary Steve Preston announced a $3.9 billion national program Friday to help all states and some of the hardest-hit localities prevent properties from being abandoned and to reduce urban blight. HUD plans to hold a national summit next month and regional events to explain the details of the so-called National Stabilization Program.

"To those areas trying to recover from the effects of foreclosure and declining property values, help is on the way," Preston said in a statement.

With a foreclosure rate of 4 percent, New Jersey is at low risk for property abandonment, HUD figures show. But certain North Jersey localities are especially vulnerable. For instance, Paterson and Newark each have foreclosure rates in excess of 10 percent.

In addition to the statewide program, here are the five Garden State localities also in line to receive the HUD money, followed by the funding levels and local foreclosure rates:

Bergen County, $2.1 million, 2.5 percent.

Jersey City, $2.1 million, 6 percent.

Newark, $3.4 million, 10.6 percent.

Paterson, $2.3 million, 10.1 percent.

Union County, $2.6 million, 4.8 percent.

Reach Raju Chebium at rchebium@gns.gannett.com

 

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